Plan 2 - Overseas thresholds

The repayment threshold for the UK is £25,000. So anyone with an annual salary of over £25,000 is required to repay their loan and they pay 9% of their earnings over this threshold.

If you are living overseas we work out your monthly repayment amount using the same principles as for those who live in the UK. So, you will repay 9% of your earnings over the repayment threshold for the country you are living in.

To take account of differences in living costs, the repayment threshold in a foreign country may not be the same as in the UK. We will update thresholds each year to take account of price changes.

In the UK, the interest rate that applies to your loan is based on the UK Retail Price Index (RPI), and it can vary depending on your income:

If you earn under the lower income threshold your interest rate is set at the UK rate of RPI.

If you earn between the lower and upper income threshold your interest rate is set at the UK rate of RPI plus a percentage based on your actual income.

If you earn the upper income threshold or above your interest rate is set at the UK rate of RPI plus 3%.

The same principle applies if you are living overseas. You can find out the current interest rates on the Interest rates page.

The following table shows the lower and upper income thresholds that apply for different countries. It also shows a fixed monthly repayment amount - this is how much you would be liable to repay each month if you did not inform us of your actual income while overseas.